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than milk and its products, orders issued pursuant to this section shall contain one or more of the following terms and conditions, and (except as provided in subsection (7)) no others:

Section 16 of the amending bill amends section 8c (2) and (6) of the act to permit the issuance of marketing orders for any agricultural, dairy, or horticultural commodity, or product thereof, except in the case of apples, where such authority is limited to apples produced in the States of Washington, Oregon, and Idaho. An amendment was proposed at the hearings to remove this limitation in respect to apples. The committee does not feel justified, however, in including this amendment in the amending bill without first affording representatives of the apple industry a special opportunity to be heard. This appeared particularly important because the bill upon which the hearings were held proposed no change in the act in respect to the issuance of orders for apples. Authority to issue orders for apples produced in the above three States was authorized by an amendment to the act approved May 31, 1939.

The only opposition to this section of the amending bill expressed at the hearing was that submitted by certain canners of fruits and vegetables. Other canners and producers testified in favor of the provisions of this section.

The act now permits the Secretary of Agriculture to enter into marketing agreements for all agricultural commodities and products thereof, but the issuance of marketing orders is not authorized for certain agricultural commodities, including most fruits and vegetables for canning As previously pointed out in this report, this authority alone is ineffective unless accompanied by authority to issue marketing orders in the manner provided in the act for other agricultural commodities.

Many individual fruit and vegetable commodities are marketed in two or three outlets, including sale in the fresh, dried, frozen, and canned form. Marketing orders are now authorized for all of these outlets except canning. These products are all competitive with each other. Failure to control the product going to the canning outlet renders less effective measures for controlling the other market outlets and affords no protection to the producers of commodities used only for canning.

The economic condition of the producers of fruits and vegetables is as bad as the condition of producers of other agricultural commodities. These producers do not receive the advantages afforded producers of other major crops by other parts of the farm legislation. Aside from marketing agreement and order programs, the primary other means of assistance to these producers is that provided through purchases for relief distribution, the Food Stamp Program, and other surplus removal programs authorized by section 32, Public Law 320, Seventyfourth Congress, approved August 24, 1935, as amended. The marketing problems of fruit and vegetable producers cannot and should not be met only by the use of Federal funds, particularly where such funds can be used more effectively when supplemented by marketing agreement and order programs. In the case of grapefruit, for instance, the record shows that the Federal Surplus Commodities Corporation expended about $4,800,000 during the 3 crop years 1936–37 to 1938-39 for the purchase of canned grapefruit juice or grapefruit for canning. Part of this product was canned from grades and sizes of grapefruit, which because of the extremely large grapefruit surplus was being kept off the fresh grapefruit market by marketing agreement and order programs covering this outlet. Had similar programs been possible in respect to grapefruit sold for canning, substantially less expenditures would have been necessary for grapefruit juice, and the combined program would have been much more effective for producers.

As previously indicated, some of the most effective marketingcontrol programs so far as producers were concerned were developed in respect to canning crops in 1933 and 1934 when licenses were authorized for all agricultural commodities. These programs were strongly supported by canners as well as producers. For some canning commodities, as well as for certain other commodities, it may prove difficult, or perhaps even impossible, to develop effective marketing-control programs. The amendment proposed by section 16, however, does not establish programs for any commodity. It merely makes such programs legally possible under the act. Producers of all agricultural commodities should be afforded equal opportunity under the act to develop such programs.

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SENATE

76TH CONGRESS

3d Session

}

REPORT No. 1720

QUARTERLY CERTIFICATE OF SETTLEMENT OF MONEY

ACCOUNTS OF THE NATIONAL GUARD

May 29 (legislative day, May 28), 1940.--Ordered to be printed

Mr. GURNEY, from the Committee on Military Affairs, submitted

the following

REPORT

[To accompany S. 3497)

it do pass.

The Committee on Military Affairs, to whom was referred the bill (S. 3497) to require the issuance by the General Accounting Office of a quarterly certificate of settlement of money accounts to United States property and disbursing officers of the National Guard of the several States, Territories, and the District of Columbia, having considered the same, report favorably thereon with the recommendation that

This measure provides that a quarterly certificate of settlement of money accounts shall be issued by the General Accounting Office to United States property and disbursing officers of the National Guard of the several States, Territories, and the District of Columbia, within a period not to exceed 3 years from the date of expiration of the quarter to which such certificate of settlement pertains, such certificate of settlement to be final and conclusive for such quarter, no further charges or debts to be raised after its issuance.

The measure further provides that all unsettled, suspended, or disallowed items heretofore raised in the disbursing accounts of United States property and disbursing officers of the National Guard of the several States, Territories, and the District of Columbia at a date more than 3 years subsequent to the date of expiration of the quarterly accounts to which they pertain, shall be passed for credit by the General Accounting Office.

The General Accounting Office has been designated by law as the agency to receive and examine accounts relating to the Military Establishment, including accounts of United States property and disbursing officers of the National Guard. It is required that these accounts shall be mailed to the War Department within 10 days after the end of the month to which they relate, and then transmitted to the General Accounting Office within 20 days of their actual receipt in Washington in the case of monthly accounts and within 60 days in the case of quarterly accounts.

The average time required to complete a settlement is approximately 7 or 8 months after receipt of the account in the General Accounting Office. If an account involve questions of irregularity, some delay follows.

In the testimony given before the Senate Committee on Military Affairs by the adjutants general of the National Guard of the several States instances were cited where the General Accounting Office has suspended accounts and deferred issuance of certificates of settlement from 3 to 18 years.

It does not seem reasonable nor good administration that settlement of accounts should extend beyond 3 years, nor does it seem proper, once an account has been duly settled, that it should be reopened after 3 years.

It is the opinion of this committee that 3 years constitute ample time for an audit of the accounts of any officer and for ascertaining and establishing the facts relating to suspected or questionable payments.

The report from the General Accounting Office concerning the measure follows:

GENERAL ACCOUNTING OFFICE,

Washington, April 9, 1940. Hon. MORRIS SHEPPARD, Chairman, Committee on Military Affairs,

United States Senate. MY DEAR MR. CHAIRMAN: Further reference is made to your letter of March 15, 1940, enclosing a copy of S. 3497, Seventy-sixth Congress, entitled, “A bill to require the issuance by the General Accounting Office of a quarterly certificate of settlement of money accounts to United States property and disbursing officers of the National Guard of the several States,” and requesting the views of this office relating thereto.

The bill provides as follows:

“That a quarterly certificate of settlement of money accounts be issued by the General Accounting Office to United States property and disbursing officers of the National Guard of the several States, Territories, and the District of Columbia, within a period not to exceed three years from the date of expiration of the quarter to which such certificate of settlement pertains, such certificate of settlement to be final and conclusive for such quarter, no further charges or debts to be raised after its issuance: Provided, That all unsettled, suspended, or disallowed items heretofore raised in the disbursing accounts of United States property and disbursing officers of the National Guard of the several States, Territories, and the District of Columbia at a date more than three years subsequent to the date of expiration of the quarterly accounts to which they pertain, be passed for credit by the General Accounting Office.

It is to be noted that while the stated purpose of the bill as indicated is merely "to require the issuance by the General Accounting Office of a quarterly certificate of settlement of money accounts to United States property and disbursing officers of the National Guard

within a period not to exceed three years, the bill, if enacted into law would, in addition to its stated purpose, have the following effect:

(1) Charges or debts against the officers in question could not be raised after the issuance of such required quarterly certificate of settlement, regardless of any subsequently disclosed culpable acts on the part of these officers affecting the accounts covered by such certificate.

(2) The General Accounting Office would be required to pass credit for all illegal payments unsettled, suspended, or disallowed in the accounts of United States property and disbursing officers of the National Guard where such transactions took place within 3 years subsequent to the date of expiration of the quarterly accounts to which they pertain.

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